When chips power the nation

Dr Bui Xuan Minh, Head of Semiconductor and Industry 4.0 Research Cluster at RMIT Vietnam, sees this as a pivotal moment for the country to strengthen its control over critical technologies and advance industrial transformation.

More than assembling – building the brain of modern technology

Vietnam is already home to major players like Intel, Samsung, Qualcomm, Renesas, Synopsys, Marvel, and Faraday.

By the end of 2024, the semiconductor industry was expected to surpass US$6.16 billion.

Yet Vietnam remains in the lower rungs of the global semiconductor value chain, which is dominated by assembly, testing, and packaging.

"We still don't have local wafer fabrication foundries," Dr Minh said. "That limits our ability to move into the high-value segments like chip design and advanced manufacturing."

The challenges go beyond factories.

Vietnam faces shortages in skilled talent, research infrastructure, and specialised logistics, from stable power supplies to chip-grade raw materials.

"To become competitive, we need more than just capital investment," he said. "We need comprehensive policies, a strong intellectual property (IP) framework, and a fully integrated ecosystem that supports innovation."

Despite the obstacles, momentum is building. A national steering committee led by the prime minister and a strategic plan to train 50,000 semiconductor engineers by 2030 signal high-level commitment.

"We are entering a critical phase," Dr Minh said. "With the right moves now, Vietnam can become a serious player in Southeast Asia's semiconductor race."

Designing Vietnam's technology power by 2050

The semiconductor industry serves as the driving force of modern technological progress, fostering innovation across artificial intelligence (AI), the Internet of Things (IoT), edge and cloud computing, telecommunications, the automotive industry, and consumer electronics. 

Vietnam's opportunity lies in supply chain diversification. As geopolitical tensions push companies to seek alternatives to China and Taiwan, the country stands to benefit.

"We're seeing more research and development investment, not just assembly," Dr Minh said.

Firms like Synopsys and Faraday are ramping up research efforts in fields ranging from medical devices to data centres.

Several frontier technologies are also on the radar. In-memory computing, which could dramatically reduce energy consumption for AI hardware, and quantum chip development for fields like cryptography and pharmaceuticals are among them.

"AI-driven chip design tools from companies like Cadence and Siemens are also redefining how fast and cost-effectively chips can be made," he added.

Still, transformation will not be automatic.

"This is a high-stakes game," he warned. "Without real investment in talent, infrastructure, and IP protection, we risk missing the window."

To succeed, Dr Minh believes Vietnam must take a systems-level approach.

"It's not enough to train engineers. We need a coordinated strategy where government, industry, and universities work together."

Assembling Vietnam's semiconductor future

The national government must lead on incentives and infrastructure.

"Beyond tax breaks, subsidies, and grants to attract semiconductor fabrication and R&D investments, we need to invest in a national semiconductor fabrication foundry and enhance the reliability of electricity, water supply, and logistics infrastructure to support high-tech semiconductor research and development activities and manufacturing," Dr Minh said.

Legal frameworks for intellectual property protection and technology transfer agreements with leading global companies like TSMC or GlobalFoundries are equally critical.

Businesses also have a central role to play, especially local companies.

"Promoting partnerships between local enterprises, such as Viettel and FPT, and global semiconductor leaders, including Intel, Samsung, Cadence, Synopsys, and TSMC, is essential for enabling knowledge transfer and driving technological advancement," Dr Minh suggested.

Education is perhaps the key player.

"We need to embed chip design, microelectronics, and semiconductor physics into our curricula," Dr Minh said. "But more than that, we need strong ties between academia and industry to create job-ready graduates."

For Dr Minh, the path forward is both exciting and urgent. "We have the momentum. Now we must turn ambition into action," he insisted.

His advice to young professionals is "to embrace continuous learning and adaptability."

"The semiconductor industry evolves rapidly and those who remain curious, humble, and innovative will play a leading role in shaping Vietnam's semiconductor future," he remarked.

As Vietnam looks ahead to 2050, its semiconductor journey may be less visible than other technology shifts, but no less critical.

In this race, even the smallest chips can drive the biggest change.